Edges out Hong Kong from the top position by giving 20% of the H1 numbers.
India has emerged as the biggest contributor to Standard Chartered’s global profits for the first time in its history, edging out Hong Kong from the top position in the six months to June 30.
Almost a fifth of the UK-headquartered bank’s operating profit of $3.12 billion came from India. India reported 19 per cent rise in profit before tax of $624 million (Rs 2,870 crore) for the first half of 2010, compared to $526 million in the corresponding half last year.
Profit before tax from the Hong Kong operations dropped 11 per cent to $511 million over the period.
The main revenue driver for the bank in India was net interest income. It rose 16.5 per cent to $401 million, from $344 million in the first half of 2009.
Operating profit from the so-called consumer banking, including loans to individuals, and small businesses, more than doubled to $53 million during the first half. Income from this segment rose 18 per cent to $251 million. Gross non-performing loans in consumer banking were little changed at $64 million.
Income from wholesale banking, including loans to companies, rose 10 per cent to $760 million, while operating profit rose 14 per cent to $571 million. Loans to companies grew 24 per cent to 5.91 billion as of June 30. However, gross non-performing loans in wholesale banking grew 64.3 per cent to $184 million.
The bank improved its net interest margin to 3.8 per cent in the first half of 2010, compared to 3.5 per cent in the year-ago period. Trading income rose 41 per cent to $155 million from $337 million in the first half of 2009. Fee income, however, fell 26 per cent to $249 million from $349 million over the same period.
Neeraj Swaroop, Regional Chief Executive, India and South Asia, said the bank planned to grow its unsecured loans portfolio selectively. The bank has been inactive in the segment for the past 12-18 months. He expects 17-20 per cent growth in loans and deposits in the current financial year.
In June, the bank became the first multinational company to list on an Indian stock exchange, when it raised $531 million through an Indian Depository Receipt (IDR) issue.
The IDRs fell 4.4 per cent at close to Rs 117.9 on the Bombay Stock Exchange after hitting an all-time intraday high of Rs 125. Ten IDRs make up a single share of Standard Chartered Plc.
